This assignment will begin with the statement that the contract has always played an important part in regulating the relationship between employee and employer. Even so, throughout history, legislative provisions have also intervened to regulate the relationship between employee and employer, and from time to time that relationship was defined as a status rather than a contractual relationship. Reliance on the ordinary principles of contract law has compromised employment tribunal’s ability to fairly balance the interests between employee and employer. The difficulties are particularly profound since the employment contract consists of statutory, implied and express terms. These unique characteristics of the employment contract alone speak to the fact that it is no ordinary contract and that balancing the interests of the employee and the employer necessarily requires recognition of the inequality of bargaining positions. Until recently, the employment contract determined all issues that arose during the course of the working relationship including, rights, duties, and remedies. However, many rights, duties, and remedies are now provided for by statutes such as the question of unfair dismissal and redundancy. All employees are deemed to have a contract of employment and where it is not in writing and the parties may even disagree as to the precise terms, a contract exists nonetheless. When the parties disagree as to the terms of the contract the employment tribunal has the authority to determine what the terms of the contract are.

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